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Welcome to this lecture
on financial management.
My name is Rudy Aernoudt,
I'm a professor at
the University of Kent which
is a university in Belgium.
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This lecture is based
on eight talks.
The first one today will be
about financial management.
The concept, let's
say the introduction,
we move to the second one
on investment analysis,
moving to the
valuation of a company
and then we're looking to
different kinds of financing,
such as venture capital,
Mezzanine, business
angels, love money,
and we'll end by issuing shares
and financing to stocks.
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If you speak about financial
management, what do we
mean?
Financial management
has an objective
to increase the value
of the company for
the shareholders.
This is a common
accepted definition,
so it's about value that's
why it's important that we
speak about valuation and
it is for the shareholders.
Of course, for the shareholders
is quite limited as an approach.
But we should see
that shareholders,
of course, are important
because they finance
the company.
But at the same time,
stakeholders are involved
because stakeholders do
influence the value
of the company.
If we say in the
narrow definition,
it's about shareholders, we
do indirectly imply
stakeholders.
Second comment on
the definition.
Mostly we discussed in
terms of risk and return.
Risk and return is of course,
limited because we speak
now about the impact
on the environment,
the social impact, so we
must apply in our
value approach,
risk, return, and the third
element will be impact.
Each time you make a
decision, for instance,
an investment decision or
a decision to increase
or decrease stocks,
each time you have to say
what is the impact on
the value of the company taking
into account the
risk it implies,
the financial
return it involves,
and the possible impact on
the environment and social.
